IHS Global Insight Perspective | |
Significance | Venezuela has published regulation allowing the creation of a state-owned telecommunications company. The new company will conduct research and development projects in the telecoms field. |
Implications | The new company will be responsible for the research, development, and manufacture of equipment such as antennas and low-noise amplifiers and for the technical support and maintenance of telecommunications equipment. |
Outlook | The creation of Invetel is in line with the president's transformation strategy for the sector. The strategy aims to promote the development of a national technology industry able to satisfy Venezuela's technological needs while reducing technological dependency on other countries. |
The Venezuelan government published in the official gazette on 21 April a Decree (7.387) that allows the creation of a new state telecommunications company to conduct research and development projects in the telecoms field, Business News Americas reports. The company, to be named Industria Venezolana de Telecomunicaciones (Invetel), will be responsible for the research, development, and manufacture of equipment such as antennas and low-noise amplifiers and for the technical support and maintenance of telecommunications equipment. The new company will be overseen by the Ministry of Science and Technology (MCTI).
Outlook and Implications
Following the nationalisation of CANTV in May 2007, President Hugo Chávez announced plans for the promotion of telecoms services as part of the National Plan of Telecommunications, Information, and Postal Services for 2007 to 2013 (see Venezuela: 1 May 2007: President's Immediate Plans Include Increase of Fixed and Mobile Lines in Venezuela). The creation of Invetel is in line with the Chávez's transformation strategy for the sector, aimed at promoting the development of a national technology industry able to satisfy Venezuela's technological needs while reducing technological dependency on other countries.
On 10 May 2009, Venezuela launched its first locally made, low-cost mobile handset, called "El Vergatario". The launch of this new device, which was manufactured by Venezuelan-Chinese joint venture Vetelca and distributed by state-controlled operator Movilnet, received a very positive response from the local public, with stocks running out a few days after its release (see Venezuela: 11 May 2009: Venezuela Launches First Locally Made Mobile Handset). Vetelca announced earlier in March that it would launch eight new mobile handsets in Venezuela throughout 2010. The new phones' launch will include mid- and high-range handsets able to compete with popular smartphones such as the BlackBerry. Carlos Audrines, the president of telecoms incumbent CANTV, confirmed that the handset-maker aims to produce 2.5 million mobile phones locally (see Venezuela: 4 June 2009: Venezuela to Launch a New Handset to Compete Against BlackBerry and Venezuela: 2 March 2010: Vetelca to Launch Eight New Mobile Handsets in 2010).